Ultra rich families are involving millennial and Gen Z heirs in their personal investment firms to gain job experience and exposure to investing in alternatives and startups. However, issues arise around family members being paid less than market-based compensation, leading to resentment and power dynamics in negotiating for fair pay.

Compensation disputes are common in family offices, with some feeling underpaid while others are overpaid and feel trapped. Generational expectations play a role, as self-made entrepreneurs may use outdated benchmarks for compensation. Ambiguity in job responsibilities and pay structures can lead to conflict among family members.

To prevent conflicts over compensation, experts suggest working with consultants to set salary levels or establishing mediation committees. Millennials and Gen Z members are advocating for more formalized compensation plans, as they are less willing to rely on verbal agreements and want written assurances for fair pay in family offices.

Read more at CNBC: When ultra rich hire family members, what to pay them can be tricky